Bitcoin’s monopoly of the market is indisputable; Although altcoins are an indispensable part of the market, many altcoins tend to follow in the footsteps of Bitcoin. However, when looking at the recent performance of some of the major altcoins, some altcoins rebounded independently and showed a lower correlation with Bitcoin and Ethereum price.
On the other hand, some potentially valuable coins had a different fate and were dominated by broader market sentiment. One of those coins was Polkadot (DOT), but it sure wasn’t the only one on the list.
Confusing times for DOT investors
In the past 24 days, the DOT rallied over 100% and broke the major support level of $ 20, however, a psychological barrier of $ 22 remained even at press time, which the alt was unable to break. Polkadot’s all-time high was $ 49.35, which was reached on May 15, but with the alternative’s price down more than 115% at press time, investors appeared unsure of its price trajectory.
While these were confusing times for DOT, it was notable that its price had a marked relationship to the price of BTC. Even though Polkadot is an important alternative, the fact that it is more of a functional asset that highlights traditional functionality in the chain could be one of the reasons why the alternative followed broader market sentiment. In particular, during this rally, some other altcoins like Cardano, Ethereum Classic, and even Bitcoin Cash seemed to be carving their own niche in terms of price. So what was it that caused the alts that ranked lower than Polkadot (ETC and BCH) to rebound independently?
This is what the DOT needs
Although the DOT noted strong pumping behavior in the past, this time one thing that was lacking was high network development. During all previous rallies, DOT development activity had maintained higher levels, this time, however, DOT development activity was at an all-time low, at press time.
Even though the DOT had decent social volumes, as seen in the chart, Polkadot’s social volumes generally remain high regardless of a bull or bear market.
These coins also have similar destinations
DOT is not the only currency waiting for a Bitcoin breakout for a new rally, other alts like Uniswap and Kusama had a similar fate. Since July 22, when the rally started, Polkadot won almost 100%, while Kusama was up 70% and UNI saw a 90% rally. Although these numbers looked good, all three assets had a very similar trajectory to Bitcoin and the larger market.
Uniswap and Kusama have highlighted independent pumping capacity in the past, but with the overheating of the BTC price they have also been consolidating. In fact, in particular, both currencies fought at their highest resistance trying to break out of it.
Additionally, DOT, UNI and Kusama saw comparatively lower trade volumes with high prices compared to the larger market. The entries from these alts were decent and all three oscillated in the overbought zone; however, their RSIs were showing a dip at press time. Although most of the metrics highlighted a neutral view for coins, an increase in development activity could be a game changer for them.
This is a machine translation of our English version.
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